Visakhapatnam Steel Plant sets historic single-day output record, signals firm revival* _- Palla Srinivasa Rao_

Visakhapatnam, December 17:*  The Visakhapatnam Steel Plant (VSP), operated by Rashtriya Ispat Nigam Limited (RINL), has scripted a landmark chapter in its history by achieving its highest-ever single-day hot metal production of 21,012 metric tonnes on December 14, 2025, Telugu Desam Party (TDP) State president and Gajuwaka MLA Palla Srinivasa Rao said on Tuesday.

Describing the feat as a defining milestone, Mr. Srinivasa Rao noted that the plant had, for the first time, exceeded its installed daily capacity, underscoring a decisive turnaround in operational performance. The achievement, he said, dispels the prevailing pessimism surrounding the plant and calls for an objective assessment of facts rather than conjecture.

He pointed out that during December 2025, the steel plant has been registering an average daily hot metal output of around 19,450 metric tonnes, translating to nearly 92% capacity utilisation. This, he observed, is clear evidence of operational stability and sustained momentum. Improved raw material availability, disciplined production processes, and more efficient management practices have collectively contributed to this revival, he added.

Mr. Srinivasa Rao asserted that the coalition government has extended unequivocal support to the revival of the Visakhapatnam Steel Plant. Recalling the Telugu Desam Party’s role in preventing the plant’s privatisation in 1998, he said similar resolve is being demonstrated in 2025 to ensure that VSP remains in the public sector. He dismissed allegations of “backdoor privatisation” as baseless, explaining that the rationalisation of contracts—from over a thousand earlier to 42 contractors across 42 divisions—was aimed solely at reducing financial stress and improving efficiency.

The TDP leader highlighted that more than ₹14,000 crore has been mobilised to stabilise the plant, including ₹11,440 crore from the Centre and ₹2,600 crore from the State government. These funds, he said, have provided crucial financial oxygen, ensuring uninterrupted supply of raw materials, power, and water. Drawing a historical parallel, he recalled how the plant was rescued with Central assistance of ₹1,350 crore during the tenure of Prime Minister Atal Bihari Vajpayee, and said a similar spirit of cooperation is now visible under the leadership of Chief Minister N. Chandrababu Naidu, Union Minister Ram Mohan Naidu, MP Bharat, and the Union government led by Prime Minister Narendra Modi, steering the plant back towards profitability.

Refuting claims that hot metal is being discarded, Mr. Srinivasa Rao said such assertions are “categorically false.” What is removed, he clarified, is slag—a natural by-product separated during the production process—and not hot metal itself. “If hot metal were indeed being wasted, how could the plant achieve a record production of over 21,000 metric tonnes in a single day?” he asked.

He laid the blame for RINL’s financial distress on the previous YSR Congress Party government, alleging that debts to the tune of ₹38,000 crore were piled onto the plant during its tenure. Keeping production idle while continuing to pay salaries and accumulating liabilities, he said, had pushed the PSU into a severe crisis. Against this backdrop, the State government’s decision to extend ₹2,600 crore in support—at a time when most States refrain from funding PSUs—should be seen as a historic intervention, he argued.

Mr. Srinivasa Rao criticised certain YSRCP leaders and several trade unions for what he termed “irresponsible propaganda” and for stoking unnecessary controversies without fully appreciating ground realities. While professing opposition to privatisation, he said, such actions were effectively attempting to push the plant back into the dysfunctional practices of the past, risking the return of issues such as ghost employees and wage disparities.

He warned that politically motivated strikes and disruptions only create conditions conducive to privatisation. Constructive cooperation, he said, is essential to ensure that the plant remains in the public sector, jobs are safeguarded, and revival funds are utilised effectively.

“Jobs exist only if the plant functions. Ignoring this basic truth helps no one,” Mr. Srinivasa Rao said, questioning critics to name even a single private company willing to take over the plant if privatisation were truly imminent. The coalition government, he maintained, has done everything within its mandate. The future of the Visakhapatnam Steel Plant, he concluded, now depends on unions, workers, and displaced families recognising the realities and extending their cooperation to management to secure the PSU’s long-term stability

                             Sharma K.V.

                               Editor